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EXX
EXX
EXX - Exxaro Resources Limited - Exxaro suspends underground Mining at new
clydesdale
Exxaro Resources Limited
(formerly Kumba Resources Limited)
Incorporated in the Republic of South Africa
(Registration Number: 2000/011076/06)
Share Code: EXX
ISIN Number: ZAE000084992
("Exxaro" or "the company")
EXXARO SUSPENDS UNDERGROUND MINING AT NEW CLYDESDALE
Diversified resources group Exxaro Resources Limited (Exxaro) has announced
that, in the interests of safety, it has indefinitely suspended underground
mining operations at its New Clydesdale mine in Mpumalanga province. The
open-cast and plant operations will continue to operate.
The decision to suspend underground operations follows a rock engineering
assessment of the old workings which indicated that the support pillars had
deteriorated to an unacceptable safety factor. To ensure the safety of all
underground employees, management decided to suspend underground operations
with immediate effect as the condition cannot be rectified in the short
term.
No job losses will be incurred as the group will redeploy affected
employees to its other coal operations in Mpumalanga and Limpopo provinces.
Management is exploring all possible alternatives to mitigate the impact on
production and product supply and these measures are expected to be
finalised in the next quarter.
Substantial export quality underground reserves remain in the New
Clydesdale mining lease area (6,5Mt ROM) and an assessment is underway to
determine the feasibility of accessing these reserves with new
infrastructure.
To date, New Clydesdale`s underground operations have produced 65% of the
mine`s annual production and initial indications are that the financial
impact of the suspension will be loss of income of R50 million for 2007,
with remedial actions underway to reduce this figure.
In the financial year ended 31 December 2006 New Clydesdale produced 1,1Mt
of thermal and metallurgical coal, primarily for the export market.
The financial information in this statement has not been reviewed or
reported on by Exxaro`s auditors.
Editor`s Note:
Exxaro is a diversified resources group with interests in the coal, mineral
sands, base metals, industrial minerals and iron ore commodities. The
group`s coal business has a capacity of 45Mtpa and is South Africa`s fourth
largest coal producer. Exxaro is the largest supplier of coal to Eskom for
power generation and is the country`s largest producer of metallurgical
coals.
www.exxaro.com
Enquiries:
Trevor Arran
Executive General Manager: Corporate Affairs & Investor Relations
Tel: +27 (0) 12 307 3292
Mobile: +27 (0) 83 609 1444
Sponsor: J.P. Morgan Equities Limited
Date: 14/03/2007 16:56:01 Produced by the JSE SENS Department.
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